OECD kpcdb

1. Scope

 

Section 2(g) includes agreements that restrain competition within the scope of Act of Restraint on Competition which reduces or hinders the competition among businesses in the market. Section 13 of the Competition Law prescribes that no person shall carry out any of the following acts which cause act of restraint on competition:

 

a)  fixing the price directly or indirectly in purchase price or selling price or other commercial situation;

b)  making agreement on restraint on competition in the market;

c)  abusing by taking chance on the situation of dominance in the relevant market;

d)  conducting restraint on market by individual or organisation;

e)  restraining and preventing to share market or resources provision;

f)   restraining or controlling on production, market acquisition, technology and development of technology and investment;

g)  collusion in tendering or auctioning.

 

The general prohibition against anticompetitive acts does not distinguish between vertical and horizontal agreements.

 

Exemption: Section 14 stipulates that the Commission may for a certain period, exempt an agreement that restrains competition but: (a) improves overall business performance; (b) promotes technological advancement or improves the quality of goods and services; (c) ensures the uniformity in the matters of carrying out business, distribution of goods and payments not linked to price;(d) raises competitiveness of SMEs;(e) raises competitiveness of Myanmar businesses in international markets.

2. Assessment

The MmCC has not yet published guidelines that explain how horizontal agreements and vertical agreements will be assessed.

3. Remedies and sanctions

Remedies and administrative sanctions: See Section I.4 on Remedies and administrative sanctions.

 

Criminal sanctions: Section 39 sets forth that any person who violates the prohibition contained in Section 13 shall, on conviction, be punished with imprisonment for a term not exceeding three years or with a fine not exceeding one hundred and fifty lakhs Kyat or with both.

4. Leniency

The possibility of leniency is referred to in the Competition Law. Section 52 prescribes that the MmCC may co‑ordinate with the Courts to grant a pardon to a person as a leniency who discloses that he/she participated in a violation of Section 13.

 

Under Section 53, when granting leniency by the respective Court, sanction mitigation may be granted considering the co‑operation time and type of co‑operation offered.

 

There is as yet no further guidance on how such leniency may be applied in practice by the MmCC and the Courts.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).